Leading module manufacturer Canadian Solar’s developer subsidiary Recurrent Energy has secured a US$115 million finance deal to fund its 60MW Barren Ridge solar farm in California, its third in the state in as many months.
The debt facility agreement has been reached with a club of banks including Rabobank, Santander, NordLB, Key Bank and CIT, while a tax equity investment commitment has also been agreed with US Bancorp Community Development Corporation, which is a division of US Bank.
The facility comprises construction debt, a tax equity bridge loan and a term loan option for the project, which is currently under construction in Kern County and expected to commence operation in Q3 2016.
Recurrent has already signed a long-term power purchase agreement for the electricity and associated renewable energy credits with the Los Angeles Department of Water and Power. Shawn Qu, chairman and CEO at Canadian Solar, said the financing deal was an “important milestone” for the company.
“Investment in clean energy projects from industry leading investors and financiers such as USBCDC and the lender club demonstrates the success of the solar industry moving into our mainstream energy mix,” Qu added.
The deal comes several months after Canadian Solar announced a flurry of development deals in California totalling roughly 300MW, including a partnership with Southern Power for the 200MW Tranquility Solar Power Project and a separate financing deal for the 100MW Mustang solar farm in Kings County.